Local Celebrity Endorsement : Can You Go Far by Staying Close?

Abstract: Celebrity endorsement consists of a written or spoken statement from a publicly known person, proclaiming the benefits of some product or service. Previous research on celebrity endorsement has proved it very successful in promoting brands or companies. Even though many marketing strategies exist, it can be especially effective for newly started ventures to apply celebrity endorsement in their approach. While celebrity endorsement may be a good way to overcome weaknesses, such as liability of newness and lack of legitimacy, new ventures often cannot afford to implement this strategy. Therefore, an option to this might be local celebrity endorsement. This thesis investigates the impact of local and well-known celebrity endorsement on communication effectiveness. Through a quantitative study, the authors have concluded that local celebrity endorsers are perceived more trustworthy and emotionally involved in the endorsement process than well-known celebrity endorsers. Local celebrities and well-known celebrities are perceived equally expert, attractive and capable of transferring meaning to the endorsed product. Local celebrity endorsement is overall more effective than well-known celebrity endorsement in communicating the endorsement message. It can therefore be a suitable tool for newly started ventures that cannot afford to employ more expensive, well-known celebrity endorsement in their quest for gaining quick reputational capital.